Capabilities
Altus utilizes vertical integration to enhance its operational capabilities and deliver superior value to our real estate investment partners. We enhance every partnership by employing subject matter experts and a proven operational framework, refined by careful data analysis and decades of experience.
Capital Markets
Altus’ capital markets team structures deals that align partnership interests. Our proven track record has generated long-standing relationships with capital providers, yielding financing terms that enhance flexibility and property returns.
A sensible, data-driven capital strategy has the potential to reduce investor risk. Employing thoughtful, judicious leverage with a focus on flexible debt instruments can enhance returns, provide downside protection and value-building opportunities, and allow for decision-making in the asset’s best interest.
Capital vigilance can assure liquidity and build capital reserves, allowing for pragmatic reinvestment into our assets and acting as a hedge against market downsides. By maintaining a healthy debt service coverage ratio, cash flow is protected and available to pay debt obligations. The larger the coverage ratio, the more conservative the financing structure.
Investor communications are guided by the principles of transparency, consistency, accessibility, and flexibility. Our investor communications team oversees the delivery of tailored reporting packages, timely K-1 schedules, and detailed financial statements. Our team is easily available by phone or email, providing investors with personal connectivity. In addition, investors can access their information at any time through our secure investor portal.
By turning the dial on leverage and applying flexible debt strategies, Altus is able to manage properties according to core commercial real estate principles.
Investments
The investment team focuses on identifying assets for acquisition using Altus’ rigorous, data-driven underwriting process. Our real estate investment professionals conduct thorough due diligence, underwriting of assets, and forecast returns prior to making a purchase or sale. We approach our pipeline with neutrality and a strong focus on potential downside scenarios.
Significant consideration is given to factors which tend to minimize downside risk including:
- Assets with projected purchase prices that are positioned below today’s replacement cost.
- Multi-tenant assets with strong tenant profiles and staggered lease maturities.
- Locations in supply-constrained sub-markets ensure a stable workforce base to enhance leasing performance and occupancy.
Altus demonstrates an elite level of selectivity in asset acquisition. Altus’ focus on asset selectivity has resulted in closing only approximately 4.5% of total assets evaluated.
Altus uses granular, space-by-space financial tools to frame the entire real estate investment from purchase to sale. The insights drawn from these tools guide decisions throughout the real estate investment horizon, inform potential selling windows, and better position the assets relative to specific competition. Our thesis is regularly updated to optimize outcomes.
Our disciplined underwriting process enables us to uncover advantages others overlook, with over 38% of investments sourced off market between 2012 and 2021.
Property Management
Altus’ property management team provides exceptional service to tenants. Our team develops a full understanding of the needs of each property, identifying strategies for value maximization while proactively managing the day-to-day operations in a fluid economic environment.
By striving to optimize operations with an emphasis on tenant relations and strategic building improvements, Altus’ in-house property management team adds value to our portfolios. Space-by-space analysis using complex data modeling drives asset management decisions. A full circle understanding of leasing commitments and tenant relationships complements our data-determined decisions. Total return can be amplified and exit positioning further enhanced by strategically reinvesting back into the assets. Enhanced amenities and services can secure higher rents, increase occupancy, and retain tenants.
Our property management teams are responsive and grow personal, productive tenant relationships. Each asset is staffed with experienced property managers that report to our corporate management team. This means the same leadership determining asset selection drives property management strategy.
Well-amenitized, tech-enabled, and ESG-conscious office spaces in suburban sub-markets should be better able to adapt to variable tenant needs and changing work environments.
Leasing
Altus’ leasing team works to maintain occupancy rates to generate optimal investor returns. Keeping the assets occupied is the primary operational goal, critical to investment success.
Rigorous data collection and analysis mitigates business risk by uncovering unforeseen pitfalls and hazards. Proprietary tools, including complex multi-factor models, provide opportunities to plan for unforeseen risks and improve decision making. Staggered lease rollover schedules can reduce the cash flow risk for investors and create optimal exit windows. With lower uncertainty, buyers are more likely to value assets higher, bolstering investor returns.
Altus builds relationships with real estate brokers located in our strategically chosen secondary markets with access to high-level leasing marketing technologies including augmented reality, virtual tours, interactive leasing presentations, and data-driven digital marketing campaigns.
High occupancy drives net operating income and helps achieve higher prices when assets are sold.
Development
Altus’ approach to development is rooted in quantifying risks by comprehensively analyzing factors of potential capitalization, design, and construction scenarios.
Altus develops and invests through joint ventures with institutional equity partners and closed-ended equity funds. As a capital structure conscious firm, Altus brings market-leading deal structuring experience to each project with the goal of optimizing risk-return dynamics. By continually uncovering opportunities in capital markets, Altus strives to provide stakeholders with the best possible results while limiting downside risks.
Granular data-driven insights inform each decision in Altus’ property development strategy. By coupling our data-driven analysis with best-in-class architects, construction firms, and banking institutions, Altus creates and implements development strategies that meet or exceed the requirements of all stakeholders.
An acute focus on data analysis enhances value creation throughout the predevelopment, development, and operations/sales stages of the real estate development life cycle.
Construction
Altus’ dedicated construction team specializes in both new tenant finish construction and remodeling of existing work environments, with experience in office, industrial, retail, and multi-family sectors.
Altus provides turnkey construction management for corporate interiors, tenant finishes, renovations, and related tenant occupancy needs. From large and complex to small and nuanced, each project is a highly structured process. Many moving parts and participants must be coordinated with precision. Project phases generally include design, planning, scheduling, and completion of the build, each with their own complexities. Services extending beyond the design and build of a project include municipal permitting to post-occupancy services.
Renovating occupied spaces is a particular strength of the Altus construction team. The logistics surrounding this complex type of construction require coordinated attention to just-in-time materials and equipment deliveries, limiting disruption and keeping the building occupants safe from construction activities.
